25% Tariff on Chinese Products
§ Anything that we buy from China, we can buy someplace else just as well.
§ The Chinese product arrives at US customs and Border Protection warehouse in the US. The US customs broker pays the tariff at the customs house on behalf of the importer before the product can be released from the customs warehouse. The money then goes to US Treasury.
§ The importer may look to another country for the product. The retailer and customer may do the same or choose a local manufacturer.
§ The Chinese exporter can chose to stop selling the item, He can reduce the selling price. He can seek a market for his products in another country.
§ The Chinese government has the option of subsidizing the manufacturer or devaluing the Yuan to offset the cost of the tariff.
§ China can stop buying imports from the US, or impose the same stiff tariff on us, but since Chinese imports from the US amount to far less than US imports from China, the leverage is not as great for China.
§ China can retaliate by dumping US treasury bonds, which they have done before.
§ US exporters to China can seek sales in other countries, concentrate on domestic sales or shift their product mix away from products exported to China. There will likely be less outsourcing of manufacturing, plants and labor to China.
§ If the US customer chooses to buy an alternative product made in the US, that choice will impact our economy significantly in a positive way, while affecting the Chinese economy in a negative way. The consumer’s discretionary dollars would no longer leave the country but would remain in US markets. With multiple turnovers those USDs left in the US market economy will have a multiplying effect on the GDP. Furthermore, that positive addition to the GDP and that added liquidity would accrue to the consumer’s side of the market, not to the supply side, thus rebuilding the wealth of the American consumer.
§ US businesses planed for these tariffs and will adapt. The US will be stronger for dealing China out and confronting their predatory trade practices. The rest of the world may benefit as well.
§ The Chinese product arrives at US customs and Border Protection warehouse in the US. The US customs broker pays the tariff at the customs house on behalf of the importer before the product can be released from the customs warehouse. The money then goes to US Treasury.
§ The importer may look to another country for the product. The retailer and customer may do the same or choose a local manufacturer.
§ The Chinese exporter can chose to stop selling the item, He can reduce the selling price. He can seek a market for his products in another country.
§ The Chinese government has the option of subsidizing the manufacturer or devaluing the Yuan to offset the cost of the tariff.
§ China can stop buying imports from the US, or impose the same stiff tariff on us, but since Chinese imports from the US amount to far less than US imports from China, the leverage is not as great for China.
§ China can retaliate by dumping US treasury bonds, which they have done before.
§ US exporters to China can seek sales in other countries, concentrate on domestic sales or shift their product mix away from products exported to China. There will likely be less outsourcing of manufacturing, plants and labor to China.
§ If the US customer chooses to buy an alternative product made in the US, that choice will impact our economy significantly in a positive way, while affecting the Chinese economy in a negative way. The consumer’s discretionary dollars would no longer leave the country but would remain in US markets. With multiple turnovers those USDs left in the US market economy will have a multiplying effect on the GDP. Furthermore, that positive addition to the GDP and that added liquidity would accrue to the consumer’s side of the market, not to the supply side, thus rebuilding the wealth of the American consumer.
§ US businesses planed for these tariffs and will adapt. The US will be stronger for dealing China out and confronting their predatory trade practices. The rest of the world may benefit as well.
posted by Clancy Hughes | 5/13/2019 10:55:00 AM
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